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Firm-network characteristics and economic robustness to natural disasters

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  • Henriet, Fanny
  • Hallegatte, Stéphane
  • Tabourier, Lionel

Abstract

This article proposes a theoretical framework to investigate economic robustness to exogenous shocks such as natural disasters. It is based on a dynamic model that represents a regional economy as a network of production units through the disaggregation of sector-scale input–output tables. Results suggest that disaster-related output losses depend on direct losses heterogeneity and on the economic network structure. Two aggregate indexes – concentration and clustering – appear as important drivers of economic robustness, offering opportunities for robustness-enhancing strategies. Modern industrial organization seems to reduce short-term robustness in a trade-off against higher efficiency in normal times.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 36 (2012)
Issue (Month): 1 ()
Pages: 150-167

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Handle: RePEc:eee:dyncon:v:36:y:2012:i:1:p:150-167

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Web page: http://www.elsevier.com/locate/jedc

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Keywords: Natural disasters; Economic impacts; Economic network;

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Citations

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Cited by:
  1. Safarzyńska, Karolina & Brouwer, Roy & Hofkes, Marjan, 2013. "Evolutionary modelling of the macro-economic impacts of catastrophic flood events," Ecological Economics, Elsevier, vol. 88(C), pages 108-118.
  2. Stéphane Hallegatte, 2013. "An Exploration of the Link Between Development, Economic Growth, and Natural Risk," Working Papers 2013.29, Fondazione Eni Enrico Mattei.
  3. TODO Yasuyuki & NAKAJIMA Kentaro & Petr MATOUS, 2013. "How Do Supply Chain Networks Affect the Resilience of Firms to Natural Disasters? Evidence from the Great East Japan Earthquake," Discussion papers 13028, Research Institute of Economy, Trade and Industry (RIETI).
  4. Ryuhei Wakasugi & Ayumu Tanaka, 2013. "Recovery from the Mega-quake in Japan: Evidence from Manufacturing Firms," KIER Working Papers 867, Kyoto University, Institute of Economic Research.
  5. TANAKA Ayumu, 2013. "The Impacts of Natural Disasters on Plants' Growth: Evidence from the Great Hanshin-Awaji (Kobe) Earthquake," Discussion papers 13051, Research Institute of Economy, Trade and Industry (RIETI).
  6. Hallegatte, Stephane, 2014. "Economic resilience: definition and measurement," Policy Research Working Paper Series 6852, The World Bank.

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